Second Colorado Tribe Challenges State Authority

Frustrated with state intervention in tribal gaming rights? The Ute Mountain Ute Tribe has joined the legal battle against Colorado‘s authority to regulate tribal online sports betting platforms. This intensifies the challenge to the state’s regulatory powers, threatening to reshape Colorado’s sports betting landscape. Curious about the implications for tribal sovereignty in gaming? Read on to uncover the full scope of this dispute and its potential impact on tribal gaming rights.

Second Colorado Tribe Joins Legal Battle Over State Regulation of Tribal Sports Betting Platforms

The Ute Mountain Ute Tribe has officially joined a lawsuit challenging Colorado’s authority to regulate tribal online sports betting. On September 30, an amended complaint was submitted to the U.S. District Court for the District of Colorado, bringing new allegations that bolster the legal stance of tribes seeking to self-regulate their online sports betting platforms.

This lawsuit follows an earlier legal move by the Southern Ute Indian Tribe, which had already sued Colorado Governor Jared Polis and Colorado Division of Gaming (CODOG) director Christopher Schroder. The Southern Ute Tribe argued that its gaming compact with the state, signed in 1995, should extend to the 2019 state-initiated online sports betting regime. It claims that their Sky Ute sportsbook, much like their land-based Sky Ute Casino, should fall under tribal regulation rather than state oversight.

The Ute Mountain Ute Tribe’s Allegations

In its amended complaint, the Ute Mountain Ute Tribe revealed its own efforts to launch an online sportsbook, authorized under tribal law. However, the tribe claims it was unable to proceed due to interference from state regulators. The complaint states: “One of the primary reasons why it was unable to proceed was that its potential vendors declined to do business with it after receiving communications from CODOG suggesting that participation could result in an enforcement action by the state.”

These allegations mirror those made by the Southern Ute Indian Tribe, which had also faced pressure from Colorado regulators. The state allegedly sent threatening letters to the Southern Ute’s vendor, US Bookmaking, and potential supplier, IGT, effectively discouraging them from partnering with the tribe.

Both tribes reference their 1995 gaming compacts with Colorado, which allow them to offer any form of gaming that is otherwise available in the state. However, the state asserts that the tribes must limit visitors to their online betting sites to those physically located on reservation land, a restriction enforced through geo-fencing technology.

Citing the Seminole Tribe Case for Support

The Ute Mountain Ute Tribe and the Southern Ute Indian Tribe further argue that their gaming compacts entitle them to permit off-reservation residents to place bets on servers located on tribal land. They point to a recent U.S. Government court victory that upheld the Seminole Tribe of Florida’s compact, which allows statewide sports betting in Florida.

The Seminole Tribe offers sports betting to Florida residents through an agreement with the state, a deal that faced legal challenges. However, the U.S. Supreme Court’s denial of the appeal by West Flagler Associates in June 2023 effectively confirmed the compact’s legality from a federal perspective. By highlighting this precedent, the Colorado tribes assert their right to regulate online sports betting independently.

Upholding Tribal Sovereignty

The amended complaint strongly condemns Colorado’s attempts to regulate tribal gaming, stating, “This attempt to bring Tribal gaming under State regulation is illegal, offensive to tribal sovereignty, and pointless.” The tribes emphasize their status as sovereign Indian nations that have occupied their homelands “since time immemorial.” Therefore, they argue, they have an inherent right to regulate their own commercial activities, consistent with their binding gaming compacts with the state.

What’s at Stake for Colorado’s Gambling Landscape?

The outcome of this lawsuit could have significant ramifications for the state’s gambling market and tribal sovereignty nationwide. The Ute Mountain Ute Tribe joining forces with the Southern Ute Indian Tribe demonstrates a unified front against what they view as overreach by state authorities. If successful, the tribes would gain autonomy over their online sports betting platforms, potentially setting a precedent for other states and tribes.

On the other hand, Colorado maintains that it has a vested interest in ensuring regulated and controlled gambling within its borders, including activities conducted online. The state argues that unrestricted tribal gaming could lead to issues with geo-fencing and compliance, thereby threatening the integrity of its gambling industry.

The addition of the Ute Mountain Ute Tribe to the legal battle over tribal sports betting regulation in Colorado marks a pivotal moment in the ongoing dispute over tribal sovereignty and state authority. As the case unfolds, it will test the boundaries of tribal autonomy in gaming and could reshape the regulatory landscape for online sports betting in Colorado and beyond. The tribes’ reference to the Seminole Tribe’s success in Florida adds weight to their argument, suggesting a potential shift toward greater tribal control in the gaming industry. For now, the spotlight remains on the courts to decide the fate of this high-stakes challenge.